The idea of using forex robots to make you money while you sleep--or work your day job, or sit in a beach chair drinking pina coladas, or whatever--is compelling. Computer programs such as the Forex Megadroid, Forex Ambush, and Forex Automoney have shown great promise.
However, the idea of forex robots is often more compelling than the reality. Many forex robots are mediocre at best. Other automated currency trading programs work for one currency pair, or one trading style, or one market condition only (trending vs. range-bound market).
Due to the varying qualities and purposes of different forex robot programs, it is vital to read forex robot reviews before investing money in a forex robot.
Robotic Intelligence Ain't All It's Cracked Up to Be?
However, the idea of forex robots is often more compelling than the reality. Many forex robots are mediocre at best. Other automated currency trading programs work for one currency pair, or one trading style, or one market condition only (trending vs. range-bound market).
Due to the varying qualities and purposes of different forex robot programs, it is vital to read forex robot reviews before investing money in a forex robot.
Robotic Intelligence Ain't All It's Cracked Up to Be?
Similar to what happens with forex signals, some currency traders tend to put too much faith in the smarts of a forex robot. In reality, many forex robots are not all that intelligent. Indeed, some forex robots are simpletons. Simple can be good, but isn't always.
Many forex robots fail to account for what psychologists call "emotional intelligence." Any successful FX trader can tell you that the currency markets are extremely influenced by emotions--namely, fear and greed. An average forex robot may underestimate these factors.
The classic example of this shortcoming occurs when volatility in a chosen currency pair increases dramatically. For instance, if a terrible U.S. jobs report comes out, way worse than expected, and the market starts going crazy, flying this way and that.
The average forex robot will take one of two actions at this time: either cash out your position at the market price, which is almost sure to be a disadvantageous one, or else let your money take one frightfully bumpy ride because this crazy f&*#ing robot is trading without a stop loss.
A margin call can happen quickly if you're not careful.
Many forex robots fail to account for what psychologists call "emotional intelligence." Any successful FX trader can tell you that the currency markets are extremely influenced by emotions--namely, fear and greed. An average forex robot may underestimate these factors.
The classic example of this shortcoming occurs when volatility in a chosen currency pair increases dramatically. For instance, if a terrible U.S. jobs report comes out, way worse than expected, and the market starts going crazy, flying this way and that.
The average forex robot will take one of two actions at this time: either cash out your position at the market price, which is almost sure to be a disadvantageous one, or else let your money take one frightfully bumpy ride because this crazy f&*#ing robot is trading without a stop loss.
A margin call can happen quickly if you're not careful.